802.11: THE Hotspot. WiFi Metro Inc.

Transcription

1 802.11: THE Hotspot WiFi Metro Inc. May 16, 2002 Arturo Pereyra General Manager & Co-Founder

2 I Company Overview II Market Overview III Business Model IV Rollout & Critical Success Factors V Q&A

3 Company Overview WiFi Metro: WISP -- wireless Internet service provider -- based in Palo Alto, CA Positioning WiFi WiFi Metro Is Is a WISP, That That enables True True Mobile Computing For For the the mobile professional Who Needs Internet access to to increase their their productivity, by by creating an an ultra ultra high-speed network of of hotspots and and HotZones across major metro markets. Unlike slower and and more costly 3G 3G or or text text based wireless services, WiFi WiFi Metro allows users to to take take their their broadband with with them thereby creating virtual office capabilities on on the the road. Key Facts Founded 10/01, Incubated at at ComVentures Footprint: SF SF 50/ 50/ 2 HotZones ; ; Seattle 4; 4; San San Diego 2 One One of of the the largest hotspot footprints in in the the U.S. U.S. Partnerships: hereuare, Gatespeed, TBN TBN (Airport, NIC NIC OEM, laptop OEM) Today Followed by by Gartner, Bear Bear Stearns, Forrester

4 Market Overview Network The number of hotspots is expected to increase dramatically over the next 5 years North America Hotspot Deployment Airports Hotels 407 1,514 2,062 2,582 2,789 2,873 Coffeeshops/Restaurants 460 2,800 7,130 9,950 11,115 11,515 Convention Centers Shopping Malls ,628 3,024 4,382 Enterprise Guesting Area ,490 2,760 3,360 3,888 Other Total 991 5,259 11,599 17,772 21,501 24,287 Source: Gartner Dataquest, June 2001

5 Market Overview Network Today, Wired Magazine estimates over 1000 U.S. Airport, Cafe/Restaurant, and Hotel hotspots Source: Wired Magazine, April 2002

6 Market Overview Customers For both segments, there is a huge unmet demand for high-speed public Internet access Demand is is strong 600k Public Access users today growing to to 21M in in % of of all all Internet usage over broadband in in 1/02 Price insensitive Majority of of companies reimburse telecom expenses Strong desire for for flat flat rate plans, not not per per minute or or usage based plans across all all travel frequency segments User surveys: How can access be be improved? Wireless access everywhere (#1 (#1 response) Higher speed than dial up up (#2 (#2 response) Wi-Fi Growth Drivers Penetration of of WLAN enabled devices Major players enlarging footprint Source: Cahners In-Stat/MDR; Analysys Research; Nielsen; Ltd.,; WiFi Metro; hereuare

7 Business Model Cellular vs. Wi-Fi deployment: similar success factors without the huge capital requirements Key Differences Free Free spectrum: PTTs/RBOCs don t control and and deep-pockets not not required Small cell cell size: Numerous carriers can can exist exist Low Low Costs: $1.5-$3B not not required to to build build out out a network Build-out: Bottom-up instead of of top-down Low Low COC: No No subsidization Key Similarities Low market education hurdles [phone use :: WLAN use] Decreasing equipment cost but but smaller window [cell node :: AP] and WiFi Metro s methodical metro rollout strategy achieves cash-positive results quickly

8 Business Model WiFi Metro creates value by deploying a low cost network and revenues from subscribers/ roamers Network Owners WiFi Metro Public WLAN Value Chain Enabler/Exchange Customer Owners WiFi Metro $ $$$ Low cost deployment National footprint Roaming partners (Cellular & Wi-Fi) Equipment & Broadband partners Exchange partner Metro, Bundled, National Plans Pay-Go, Pre-pay cards Strong Brand Venue based content World class customer service Roaming partners Increasing ARPU

9 Rollout Plan Deploy in markets where Wi-Fi users are so the network pays for itself quickly Yahoo Selection Criteria* Net Use User Expertise Domain Density Available Content Hi-tech jobs Extent business online Net spending per user Broadband access Governments use of Net Yahoo Top Markets* San Francisco Austin Boston Seattle Salt Lake City Washington D.C. San Diego Las Vegas LA/Long Beach Atlanta Orange County New York City * Source: AP; Yahoo; Seattle Post Dallas Chicago

10 Rollout Plan WiFi Metro s location strategy is to provide utility to mobile users where they need it most Location Drivers 1) 1) Main Main Street 2) 2) Universities 3) 3) Bus. Bus. Corridors 4) 4) High High traffic traffic sites/venues 4) Stanford Mall Univ. 1) Ave 4) P.A. Court Gas Station WFM hotspothotzone 2) Stanford University 3) HP, E&Y Wilson, Sonsini

11 Critical Success Factors WiFi Metro s critical success in the near term depends on factors which it can control WiFi Metro Critical Mass National Footprint Strategic Alliances Seamless Roaming Security/VPN Low COA Ease of of use Access to to Capital Industry Imbedded and pre-installed WLAN equipment Public awareness

12 User Experience WiFi Metro user experience starts with a click

13 User Experience Continues with user profiles

14 User Experience WiFi Metro delivers true Mobile Computing